WTI Crude Futures (July contract) have nearly recouped all losses made last Friday during Asian trading hours today, trading at levels near $34.00.
Yesterday, International Energy Agency Executive Director Fatih Birol said "in the absence of strong government policies, a sustained economic recovery and low oil prices are likely to take global oil demand back to where it was, and beyond". It is also reported that Chinese oil refinery demand has been rebounding since mid-April.
There are growing signs of history repeating itself, when oil prices posted a strong recovery a few years ago, after the first OPEC+ production cut in 2016.
From a technical point of view, WTI Crude Futures (July contract) maintains its bullish run as shown on the 1-hour chart. It has rebounded sharply after reaching a bullish trend line drawn from May 4. Even though there is some signs of a bearish RSI divergence, it might not be relevant in a case of strong bullish trend. The level at $32.90 may be considered as the nearest support level, with prices likely to test the 1st and 2nd resistance at $35.70 and $37.00. Alternatively, a break below $32.90 might trigger a pull-back to the next support at $32.00.
Source: TradingView, Gain Capital